SBS Transit, SMRT submit applications for fare adjustment

[cascada]

26 mins for bus no. 2 today, so jialat.

Still so thick skin dare to ask for fare increment.

[KSP]

this is the usual post election effect..... they WILL do it when the market is good.... if not no one know how will the market be next or after next year.......

[Oppsgal]

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_689850.html

Good...

Seems always got lots things increasing? Food price, hdb expense and now transportation.

:frustrated:

Now more dying people in water also increasing.

[pinky]

Oppsgal:

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_689850.html

Good...

Seems always got lots things increasing? Food price, hdb expense and now transportation.

:frustrated:

Now more dying people in water also increasing.

electricity tariffs also increased recently :mad:

[limlim]

Best response..

Daddy

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1140233/1/.html

\"SINGAPORE : The two public transport operators, SBS Transit and SMRT, have submitted applications to the Public Transport Council (PTC) seeking bus and rail fare adjustments.
Both cited cost pressures despite increased efforts to lower costs and increase productivity.
It said the cost pressures were mainly from escalating energy and manpower costs....\"

http://a6.sphotos.ak.fbcdn.net/hphotos-ak-snc6/247882_10150330921273032_551113031_9993507_7077609_n.jpg\">

[Laughing]

Transport provider dun bother about train frequency during peak hour, mrt aircon is not cool but very concern about making profit. Can the authority dun let them get what they want this time???

[Daddy D]

limlim:

Best response..

I didn't understand your picture posted initially....
then on 2nd look... it's the MIDDLE finger! Hahaha!
:faint: :faint: :faint:

[wapobs]

in Today newspaper: our beloved Transport Minister:

... that, an entity that depends on Government funding and which operates on a cost-recovery basis, \"would have little incentive to keep costs down\".


Said Mr Lui: \"Cost increases will be passed on to commuters... nationalising the operators could result in a stagnation of service quality or efficiency over time.\"

he got no incentive to keep costs down?
resulting in stagnation of quality or efficiency?
his salary no enough?? :? :? :?

[Daddy D]

Previously when other private transport operators wanted to increase fares together... the authority and CASE said this is anti-competitive...

Wonder why it doesn't apply to SBS and SMRT?
:?

[raysusan]

[quote]Both SBST and SMRT have submitted their proposals to the Public Transport Council to raise fares. This has generated some responses, including a suggestion for our public transport system to be nationalised. While this might seem like a very attractive idea, in reality, it has serious downsides, chief amongst which commuters and taxpayers (yes, even those who don’t take public transport) are likely to end up paying more, and possibly, for a poorer level of service over time.


A nationalised public transport operator that depends on government funding and which operates on a cost recovery basis would have little incentive to keep costs down. Cost increases will be passed on to commuters. Over time, this will lead to higher costs for the same level of service, which means commuters pay higher, and not lower fares. Not only would people have to pay more, nationalising the operators could result in a stagnation of service quality or efficiency over time.

On the other hand, it is the profit incentive of commercial enterprises that spurs efficiency and productivity improvements. This is the reason why many cities around the world have moved or are moving towards having commercial enterprises provide public transport services. Some people have said that the PTOs should not be making so much profit, although we should also recognise that as public-listed companies, it is not unreasonable for the PTOs to earn fair returns from the sizeable capital investments required to sustain their operations and to invest in future public transport needs.

What is important is to ensure that commuters’ interests are safeguarded even as we have commercial enterprises run the public transport services. Let me highlight the key aspects.

First, we have a robust framework to regulate bus and rail service levels through service quality and operating performance standards so that PTOs do not pursue profit at the expense of commuters. LTA will also continue to work with the PTOs to deliver improvements to the public transport system.

Second, the PTC regulates fares based on a fare adjustment formula

(0.5 CPI + 0.5 WI -1.5%)

that takes into account macro-economic factors, namely the Consumer Price Index (CPI) and average national wage increases, while delivering a productivity dividend to commuters. The fare adjustment formula protects commuters by capping fare increases – PTOs are not free to simply pass on their cost increases to commuters. As in previous years, the PTC will have to deliberate on the PTOs’ fare revision proposals bearing in mind the interests of commuters and the sustainability of our public transport system. In fact, there have been some years when the PTC approved fare increases that have been less than what the PTOs proposed but we should let the PTC deliberate on this properly and make its decision.

These two elements have enabled us to put in place an efficient, cost-effective and financially sustainable public transport system. Certainly, there are areas for further improvement so we can deliver a high quality public transport system, and I welcome your inputs and feedback.

Finally, the Government has invested heavily in our public transport infrastructure and we will continue to do so. On the rail network alone, we have invested about $20bn in the existing rail network infrastructure and will be investing another $60bn in new rail lines by the end of the decade. Government funding of public transport infrastructure is a key reason why public transport fares continue to be affordable.[/quote]http://www.facebook.com/notes/lui-tuck-yew/public-transport-fare-increase/190591647665341